Empowering education through tax: Highlights of RR 13-2025

Education stands as one of the pillars of our nation, shaping individuals to become vital contributors to society — artists, educators, designers, lawyers, accountants and more.

- LILY NADIA COPADA

It is therefore essential that the state devote critical attention to the education system’s development for the benefit of future generations.

To reinforce this commitment, the Philippine government enacted Republic Act 8525, or the Adopt-a-School Act of 1998, encouraging private entities to support public education through contributions, in exchange for tax incentives and exemptions.

Over time, the Bureau of Internal Revenue (BIR) released several implementing rules, the latest of which is Revenue Regulations (RR) 13-2025. This consolidates the provisions of RA 8525, RA 12063 (Enterprise-Based Education and Training or EBET Framework Act), and prior regulations to streamline procedures for availing of tax privileges.

RR 13-2025 grants incentives to qualified taxpayers, such as registered export and domestic enterprises, private entities and Technical-Vocational Institutions (TVIs), as determined upon application.

Registered export and domestic enterprises

In addition to the 50 percent additional deduction on labor expenses excluding salaries, wages, benefits and other personnel costs incurred for administrative, indirect labor and support services, these entities are entitled to a 100 percent additional deduction on qualified training expenses. This additional deduction must be supported by a certification from DepEd, CHED or TESDA, along with a sworn declaration issued by the applicant's authorized officer as to the amount of expenses being deducted.

Adopting private entities